Tankless Water Heater Rebates in Ontario: The Ultimate Guide 2025

As energy costs continue to rise, Ontario homeowners can take advantage of significant rebates when upgrading to tankless water heaters. With rebates reaching up to $1,650 in combined savings, understanding how to maximize these incentives is crucial for smart homeowners.
Understanding Available Rebates
Ontario offers multiple rebate programs for tankless water heater installations, making the transition to energy-efficient heating more affordable than ever.
Available Programs
New Home Renovation Savings Program (Launching January 28, 2025)
- Offers up to 30% rebate on energy efficiency upgrades
- Rebates are paid within 30-60 days of approval.
- Focuses on home energy efficiency improvements
Enbridge Home Efficiency Rebate Program (July 2024-2025)
- Up to $5,000 in total rebates available
- Must complete at least two qualified measures
- Requires pre and post-installation energy audits
- Up to $600 reimbursement for energy audits upon successful completion
Technician Fixing Water Heater
Program Requirements
- Must be an Ontario resident
- Home must be heated with Enbridge-supplied natural gas
- Installation by licensed professionals
- Pre and post-installation audits required
- Must complete installation within 120 days of pre-audit
Additional Benefits
- Utility company incentives may be available
- Potential for combined savings with other energy upgrades
- Energy bill reductions of up to 50% on water heating
Let's take a closer look at the new Ontario Home Renovation Savings Program, which represents the province's largest investment in energy efficiency to date.
Ontario Home Renovation Savings Program 2025
Program Overview
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Launches January 28, 2025
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Part of Ontario's $10.9 billion investment in energy efficiency
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Offers rebates of up to 30% for energy-efficient home improvements
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Partnership between Save on Energy and Enbridge Gas
Available Rebates
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Home energy assessment: $600
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Windows and doors: $100 per unit
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Insulation: Up to $8,900
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Air sealing: Up to $250
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Smart thermostat: $75
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Heat pump water heater: $500
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Cold climate air source heat pump: Up to $7,500
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Ground source heat pump: Up to $12,000
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Solar panels: Up to $5,000
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Battery storage systems: Up to $5,000
Program Features
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Flexible upgrade options for both bundled and single improvements
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Available for homes heated with natural gas or electricity
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Will expand later in 2025 to include rebates for energy-efficient appliances
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Designed to help reduce energy costs and improve home efficiency
Implementation Process
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Homeowners can choose between bundled upgrades requiring energy assessment or single upgrades.
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All equipment must meet specific energy efficiency standards.
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Must be ENERGY STAR certified or listed on Natural Resources Canada's qualified products list
This comprehensive program aims to make energy-efficient home improvements more accessible while helping Ontario residents reduce their energy costs and environmental impact.
Upcoming Appliance Rebates (Late 2025)
Program Expansion Details
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Energy-efficient refrigerators and freezers will be eligible for rebates.
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Part of the Home Renovation Savings Program's second phase
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Will help reduce household energy consumption
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Specific rebate amounts are yet to be announced.
Water Heater
Current Market Context
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Refrigerator prices range from $1,500 to $5,000 before rebates.
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Most modern refrigerators already meet energy efficiency standards.
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Program will make energy-efficient appliances more accessible.
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Retailers are preparing for program implementation.
Expected Benefits
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Upfront savings on appliance purchases
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Long-term reduction in energy bills
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Support for energy-efficient appliance adoption
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Helps meet Ontario's energy efficiency goals
Eligibility Requirements
Before applying for rebates, ensure you meet the basic qualification criteria to avoid disappointment.
Key Requirements
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Must be a residential homeowner
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Property must be a primary residence.
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Installation by licensed professionals
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ENERGY STAR certification for equipment
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Professional installation documentation
Cost Considerations
Understanding the financial aspects helps you plan your investment effectively.
Investment Breakdown
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Initial unit cost: $1,500-$3,000
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Installation costs: Varies by property
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Potential rebate savings: Up to $1,650
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Energy bill reductions: Up to 50% on water heating
Application Process
Following the correct application procedure ensures successful rebate claims.
Step-by-Step Guide
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Verify eligibility requirements
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Select qualified equipment
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Hire certified installers
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Gather required documentation
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Apply within specified timeframes
Additional Savings Opportunities
Maximize your savings by combining multiple incentive programs.
Tankless Water Heater
Extra Benefits
- Utility company incentives
- Seasonal promotions
- Bundle deals with other energy upgrades
- Interest-free financing options
Make the Smart Switch Today! Upgrade to a high-efficiency tankless water heater with Ascano HVAC and enjoy rebates up to $1,600. Save money, conserve energy, and experience endless hot water for your home. Call now or visit our website to get started!
Frequently Asked Questions
What are the current rebate amounts available for tankless water heaters in Ontario for 2025?
The new Home Renovation Savings Program, which will launch on January 28, 2025, offers up to $500 for heat pump water heaters. Additional savings are available through Enbridge Gas rebates and utility company incentives. Rebates are typically paid within 30-60 days of approved applications.
What are the eligibility requirements for tankless water heater rebates in Ontario?
To qualify, you must be an Ontario resident with a primary residence, have the unit installed by a licensed professional, choose an ENERGY STAR-certified unit, and complete pre- and post-installation energy audits. For Enbridge customers, your home must be heated with natural gas during the first or final audit.
How long does the rebate application process take in 2025?
The process requires completing pre and post-installation energy audits within 120 days of each other or by December 31, 2025, whichever comes first. Installation documentation must be submitted, and rebate payments are typically processed within 30-60 days of application approval.
Can I combine different rebate programs for maximum savings?
Yes, you can combine various incentive programs, but "double-dipping" for the same upgrade isn't permitted. The Home Renovation Savings Program can be combined with utility company incentives and seasonal promotions, but you cannot claim the same upgrade under multiple government programs.
Conclusion
Installing a tankless water heater in Ontario offers significant financial benefits through various rebate programs.
By understanding the available incentives and following proper application procedures, homeowners can substantially reduce their initial investment while enjoying long-term energy savings.
Remember to work with certified professionals and maintain proper documentation throughout the process to ensure successful rebate claims.
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